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Negotiating the best price for my Property.. Do I need to let the bank know?
SheilaTheKat
Posts: 3 Newbie
Hi there!
I`m a first time buyer in the process of buying a property. After I had a Valuation done on the property some friends advised me to re-negotiate the offer I first put in, which I did. The seller accepted a reduced offer and I informed my solicitor of the new offer I had made. My solicitor then told me I need to let the bank know in order to get a new mortgage offer. I was told by several people however that I don`t have to do that and that the money I got 'off' was to be used for repairs highlighted in the Valuation report.
Has anyone dealt with this situation recently and can shed some light on what I have to do. I don`t want the bank to give me problems later on, but I also need the money to deal with the repairs needed on the property.
I`m a first time buyer in the process of buying a property. After I had a Valuation done on the property some friends advised me to re-negotiate the offer I first put in, which I did. The seller accepted a reduced offer and I informed my solicitor of the new offer I had made. My solicitor then told me I need to let the bank know in order to get a new mortgage offer. I was told by several people however that I don`t have to do that and that the money I got 'off' was to be used for repairs highlighted in the Valuation report.
Has anyone dealt with this situation recently and can shed some light on what I have to do. I don`t want the bank to give me problems later on, but I also need the money to deal with the repairs needed on the property.
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Comments
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Several people are wrong then. Your mortgage is based on the valuation or purchase price, whichever is lower.0
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Not surprisingly, your solicitor is correct.0
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You aren't getting the money to pay for the repairs.
You're getting a price reduction, a smaller mortgage and paying for it yourself.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
As a FTB about to complete on my house, the house buying process was confusing and there is a lot of conflicting information out there. I'd originally thought, too, that we could get a mortgage for the house price and a bit more to use for DIY. If you watch a lot of property shows you often hear them discussing this sort of thing. But as others above have said, the mortgage is for the house purchase/valuation price only, but the lower your mortgage then the less you are repaying ad theoretically the more you can put aside each month for savings.0
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Thanks everyone! That helped a lot
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Yes, in the glory days of the bubble I think loans of 125% were the norm, pick up a house, a holiday, do some repairs and buy a trolley of booze with the rest, just wish we could get back to that outstanding British economy of old with the resounding battle cry of.....No More Boom And Bust! :T0
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